Financial Results for the Fiscal Year Ended October 31, 2009
December 11, 2009
Company name : NIKKO COMPANY
ID number : 5343 Stock listing : Nagoya Stock Exchange Second Section
URL : http://www.nikko-company.co.jp/
Representative : Makoto Yoshida, Chief Executive Officer
Contact : Shigekazu Kaneda, Board Director and Executive Managing Officer (Phone: +81-76-276-2121)
Scheduled date of general meeting of shareholders: January 28, 2010
Scheduled date to submit Securities Report : January 29, 2010
Scheduled date to begin dividend payments : (All amounts are rounded down to the nearest million yen)
1. Consolidated Financial Results for the Fiscal Year Ended October 31, 2009 (November 1, 2008 - October 31, 2009)(1) Consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income％

Millions of yen

Ordinary income

Millions of yen％

Net income

Millions of yen％

Millions of yen％

Fiscal year ended
Oct. 31, 2009

17,063(19.8)(2,322)-(2,223)-(2,303)-Fiscal year ended
Oct. 31, 2008

21,267(4.9)(1,046)-(1,031)-(2,628)-Net income per
share
Yen
Fiscal year ended
Oct. 31, 2009

Return on
equityDiluted net income
per shareYen(122.84)

Fiscal year ended(139.46)
Oct. 31, 2008
Reference: Equity in earnings of affiliates (Millions of yen):(2) Consolidated financial position
Total assets

As of Oct. 31, 200913,828

As of Oct. 31, 2008

18,046

Operating income
to net sales

%

%

%

-

(35.9)(13.9)(13.6)-(29.5)

(5.4)

(4.9)

Oct. 31, 2009: -Oct. 31, 2008: -Net assets

Millions of yen

Ordinary income
to total assets

Equity ratio

Millions of yen

%

5,258
7,586

Reference: Shareholders' equity (Millions of yen):

Net assets per share

Oct.31, 2009: 5,258

Yen

38.0

280.5942.0

403.55Oct. 31, 2008: 7,586(3) Consolidated cash flow position
Net cash provided by (used in)Operating activities
Millions of yen
Fiscal year ended
Oct. 31, 2009

(783)

Fiscal year ended
Oct. 31, 2008

41

Investment activities
Millions of yen

Financing activities

Cash and cash equivalents
at end of period

Millions of yen

Millions of yen

(785)

(726)

1,402

(616)

234

3,714

2. Dividends
Dividend per share(Record date)1Q-endYen

2Q-endYen

Year ended Oct. 31, 2008
Year ended Oct. 31, 2009
Year ending Oct. 31, 2010
(forecast)

-

1.00
0.00

-

0.00

Dividend on
Equity(consolidated)
%
%
0.2
-

Total dividends Payout ratio(annual)(consolidated)

3Q-end Year-end Annual
Yen
Yen
Yen Millions of yen
18
0.00
1.00
0.00
0.00
-

0.00

1

0.00

-

3. Consolidated Forecast for the Fiscal Year Ending October 31, 2010 (November 1, 2009 - October 31, 2010)(Percentage figures represent changes from the same period of the previous year.)
Net income per
Net sales
Operating income
Ordinary income
Net income
shareFirst half

Millions of yen
9,400

Full year

19,600% Millions of yen
4.4
(400)

%
-

14.9

-

(330)

Millions of yen
(400)

%
-

(300)

Millions of yen
(420)

-

(350)

%
-

Yen
(22.41)-(18.68)

4. Others(1) Changes in consolidated subsidiaries during the period (Changes in scope of consolidation): None
(2) Changes in accounting principles, procedures and presentation methods for preparation of consolidated financial statements
1) Changes caused by revision of accounting standards: Yes
2) Other changes: Yes
Note: Please refer to “Changes in Basis of Preparation of Consolidated Financial Statements” for further information.
(3) Number of shares outstanding (common shares)
1) Number of shares outstanding (including treasury stock) at the end of the period
Oct. 31, 2009:
19,572,000 shares
Oct. 31, 2008:
2) Number of treasury stock at the end of the period
Oct. 31, 2009:
831,026 shares
Oct. 31, 2008:

19,572,000 shares
773,364 shares(Reference) Non-consolidated financial results
Non-consolidated Financial Results for the Fiscal Year Ended October 31, 2009 (November 1, 2008 - October 31, 2009)(1) Non-consolidated operating results(Percentage figures represent changes from the same period of the previous year.)Net sales

Operating income％

Millions of yen

Ordinary income

Millions of yen％

Net income

Millions of yen％

Millions of yen％

Fiscal year ended
Oct. 31, 2009

14,867(20.8)(2,247)-(2,127)-(2,354)-

Fiscal year ended
Oct. 31, 2008

18,773

(5.2)

(922)

-

(892)

-

(2,642)-

Net income per
share
Yen

Diluted net income
per share
Yen

Fiscal year ended
Oct. 31, 2009(125.53)-

Fiscal year ended
Oct. 31, 2008

(140.22)-(2) Non-consolidated financial position
Total assets
Millions of yen
As of Oct. 31, 2009

14,248

As of Oct. 31, 2008

16,076

Reference: Shareholders' equity (Millions of yen):

Net assets

Equity ratio

Millions of yen
5,802
8,162
Oct.31, 2009: 5,802

Net assets per share
%

Yen

40.7

309.5950.8

434.23Oct. 31, 2008: 8,162*Appropriate use of business forecasts, other special items
The above business outlook is based on information available as of the published date of this release and actual results may differ fromthe forecast subject to various factors that may arise in the future.

2

1. Consolidated Financial Statements(1) Consolidated Balance Sheets

AssetsCurrent assets
Cash and deposits
Notes and accounts receivable-trade
Inventories
Merchandise and finished goods
Work in process
Costs on uncompleted construction contracts
Raw materials and supplies
Deferred tax assets
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings and structures
Accumulated depreciation
Buildings and structures, net
Machinery, equipment and vehicles
Accumulated depreciation
Machinery, equipment and vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment
Intangible assets
Lease assets
Other
Total intangible assets
Investments and other assets
Investment securities
Claims provable in bankruptcy, claims provable inrehabilitation and other
Other
Allowance for doubtful accounts
Allowance for loss on valuation of investments ofsubsidiaries and affiliates
Total investments and other assets
Total noncurrent assets
Total assets

3

FY10/2008(As of Oct.31,2008)(Millions of yen)
FY10/2009(As of Oct. 31,2009)

3,991
4,049
4,046
―
―
―
―
5
335
(102)
12,325

1,580
2,936
―
2,195
850
231
340
4
155
(198)
8,096

6,571
(3,999)2,572
6,336(5,642)
694
1,124
(974)
149
1,316
―
―
―
38
4,772

6,633
(4,165)2,468
5,874(5,321)552
1,362(1,227)
134
1,261
342
(49)
293
1
4,711

―
90
90

162
87
249

769

776

―

296

268
(79)

153
(298)

(99)

(157)

858
5,721
18,046770
5,731
13,828

Liabilities
Current liabilities
Notes and accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Lease obligations
Income taxes payable
Provision for bonuses
Provision for product warranties
Other
Total current liabilities
Noncurrent liabilities
Long-term loans payable
Lease obligations
Provision for retirement benefits
Provision for directors' retirement benefits
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Foreign currency translation adjustment
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

4

FY10/2008(As of Oct.31,2008)(Millions of yen)
FY10/2009(As of Oct. 31,2009)

4,315
2,534
―
―
55
431
94
1,789
9,220

3,116
422
100
101
42
306
105
1,232
5,427

―
―
1,035
76
127
1,239
10,460

1,350
362
1,196
88
144
3,141
8,569

3,200
3,620
1,296
(319)
7,796

3,200
3,620
(1,007)
(333)
5,479

(116)
(94)
(210)
7,586
18,046

(109)
(111)
(220)
5,258
13,828

(2) Consolidated statements of income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Gain on sales of wastes
Priority use fee of productsRent income
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Loss on valuation of derivatives
Sales discounts
Commission fee
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary Income
Gain on sales of noncurrent assets
Reversal of provision for loss on business of
subsidiaries and affiliates
Total extraordinary Income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of stocks of subsidiaries andaffiliates
Provision of allowance for loss on valuation of
investments of subsidiaries and affiliates
Loss on disposal of inventories
Total extraordinary losses
Income (loss) before income taxes and minority interests
Income taxes-current
Income taxes-deferred
Total income taxes
Net income (loss)

5

FY10/2008(Nov.1,2007-Oct. 31,2008)(Millions of yen)
FY10/2009(Nov.1,2008-Oct. 31,2009)

21,267
16,035
5,232
6,279(1,046)

17,063
13,5893,473
5,796(2,322)

4
27
50
20
80
182

3
―
100
―
113
217

16
115
―
18
―
18
167
(1,031)

36
―
19
11
18
30
117
(2,223)

―

50

4

―

4

50

―
36
287

9
20
―

―

1

19

58

354
698
(1,725)49853
902(2,628)―89(2,262)41041(2,303)

(3)Consolidated Statements of changes in equity

Shareholders' equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period

6FY10/2008(Nov.1,2007-Oct. 31,2008)(Millions of yen)
FY10/2009(Nov.1,2008-Oct. 31,2009)

3,200

3,200

―
3,200

―
3,200

3,620

3,620

―
3,620

―
3,620

3,981

1,296

(56)
(2,628)(2,684)
1,296―(2,303)(2,303)(1,007)

(281)

(319)

(38)
(38)
(319)

(14)
(14)
(333)

10,5197,796(56)(2,628)(38)(2,722)7,796―(2,303)(14)(2,317)5,479

Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period
Foreign currency translation adjustment
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders'equityTotal changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stock
Net changes of items other thanshareholders' equity
Total changes of items during the period
Balance at the end of current period7

FY10/2008(Nov.1,2007-Oct. 31,2008)(Millions of yen)
FY10/2009(Nov.1,2008-Oct. 31,2009)

(115)

(116)

(0)
(0)
(116)

7
7
(109)

(152)

(94)

57
57
(94)

(17)
(17)
(111)

(267)

(210)

57
57
(210)

(10)
(10)
(220)

10,251

7,586(56)(2,628)(38)―(2,303)(14)

57(2,665)7,586(10)(2,327)
5,258

(4) Consolidated Statements of Cash Flows(Millions of yen)
FY10/2008
FY10/2009(Nov.1,2007-Oct. 31,2008) (Nov.1,2008-Oct. 31,2009)
Net cash provided by (used in) operating activities
Income (loss) before income taxes and minority interests
Depreciation and amortization
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in provision for bonuses
Increase (decrease) in provision for retirement benefits
Increase (decrease) in provision for loss on buisiness of
subsidiaries and affiliates
Increase (decrease) in provision of allowance for loss on
valuation of investments of subsidiaries and affiliates
Increase (decrease) in provision for product warranties
Interest and dividends income
Interest expenses
Loss (gain) on sales of property, plant and equipment
Loss on retirement of noncurrent assets
Loss (gain) on valuation of investment securities
Loss (gain) on valuation of derivatives
Decrease (increase) in notes and accounts receivable-trade
Decrease (increase) in claims provable in bankruptcy, claims
provable in rehabilitation
Decrease (increase) in inventories
Increase (decrease) in notes and accounts payable-trade
Other, net
SubtotalInterest and dividends income received
Interest expenses paid
Income taxes paid
Net cash provided by (used in) operating activities(1,725)
427
81
3
152

(2,262)
782
315
(124)
161

(66)

―

19

58

12
(12)
16
―
36
287
4
477

11
(11)
36
(41)
20
1
19
1,113

―

(215)

304
(118)
180
82
12
(16)
(37)
41

427
(1,198)
200
(705)
11
(36)
(52)
(783)

Net cash provided by (used in) investment activities
Payments into time deposits
Proceeds from withdrawal of time deposits
Purchase of property, plant and equipment
Proceeds from sales of property, plant and equipment
Purchase of investment securities
Purchase of stocks of subsidiaries and affiliates
Other, net
Net cash provided by (used in) investment activities

(126)
123
(619)
119
(51)
(30)
(31)
(616)

(78)
176
(988)
106
(1)
―
(0)
(785)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable
Repayments of lease obligations
Purchase of treasury stock
Cash dividents paid
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period

329
―
―
(38)
(56)
234
57
(282)
3,996
3,714

(2,111)
1,450
(49)
(14)
(0)
(726)
(17)
(2,311)
3,714
1,402

8

Going Concern Assumption
No reportable information.
Basis of Presenting Consolidated Financial Statements
1.

Scope of Consolidation
1) Number and name of consolidated subsidiaries: 3
Nikko Ceramics, Inc.
Nikko Hanbai Co., Ltd.
Nikko ME Co., Ltd.
2)

Number and name of non-consolidated subsidiaries: 2
Nikko (Asia) Co., Ltd.
Nikko Care Co., Ltd.
These 2 companies are excluded from the scope of consolidation, given the fact that they have minimal influence on the total
assets, net sales, net income, and retained earnings and is relatively insignificant in the context of the consolidated financial
statements.

2.

Application of equity method
1) Number and name of companies accounted for under the equity method: none
2) Number and name of companies not accounted for under the equity method and the reason for the exclusion
Non-consolidated subsidiaries: 2
Nikko (Asia) Co., Ltd.
Nikko Care Co., Ltd.
Affiliates: 3
Oriental Ceramics Sdn. Bhd.
Yamamae Seitousho Co., Ltd.
N&I Asia Pte Ltd.
These 5 companies are not accounted for under the equity method of accounting, given the fact that they have very minor effecton net income and retained earnings and is relatively insignificant in the context of consolidated financial statements.

3.

Period end of consolidated subsidiaries
Consolidated subsidiaries, Nikko Ceramics, Inc. , Nikko Hanbai Co., Ltd. , and Nikko ME Co., Ltd have a fiscal year that ends on
the same date as the consolidated financial statements.

4.

Significant accounting standards
1) Valuation criteria and methods for significant assets(Securities)
Other securities
Securities with market quotations
Securities with market quotations are carried at fair value on the balance sheet
date. (Unrealized holding gain or loss is included in the net assets. The cost of
securities sold is determined by the moving-average method)
Securities without market quotations
Securities without market quotations are stated at cost, cost being determined by
the moving -average method.
(Derivatives)
Derivatives are carried at fair value.
(Inventories)
At the Company and its domestic consolidated subsidiaries, finished goods, semi-finished products and work in process arestated at cost, cost being determined by the period-average method, merchandise, raw materials and supplies are valued atcost being determined by the moving average (the carrying value on the balance sheet is written down to reflect the effect oflower profit margins), costs on uncompleted construction contracts are stated at cost, cost being determined by the specificidentification method (the carrying value on the balance sheet is written down to reflect the effect of lower profit margins)
Merchandise of overseas consolidated subsidiary is stated at the lower cost method determined by the first-in first-out method.
2)

Depreciation and amortization method for principal depreciable assets
Tangible fixed assets (excluding lease assets)
At the company, depreciation of buildings is calculated using the straight-line method, other depreciation of tangible
fixed assets is computed by the declining-balance method.
At the domestic consolidated subsidiaries, depreciation of tangible fixed assets is computed by the declining-balancemethod (however, depreciation of buildings (excluding attached structures) acquired on or April 1, 1998, is calculatedusing the straight-line method.
At the overseas consolidated subsidiary, depreciation of tangible fixed assets is calculated using the straight-line
method.
(Additional Information)
Pursuant to the revised taxation system in fiscal 2008, the company and its domestic consolidated subsidiaries calculate
depreciation expense of machinery based on the revised useful life beginning with the fiscal year under review. As a result of
this change, operating loss and ordinary loss are increased by 35 million yen, loss before income taxes and minority interests
are increased by 31 million yen.

9

Intangible fixed assets (excluding lease assets)
Amortization of intangible fixed assets is computed by the straight-line method. However, software intended forinternal use are amortized over an expected useful life of 5 years by the straight-line method.
At the overseas consolidated subsidiary, depreciation of tangible fixed assets is calculated using the straight-line
method.

Lease assets (finance leases that do not transfer ownership)
Depreciation of lease assets is calculated using the straight-line method with the respective lease terms as the useful
lives. The residual value is zero unless there is a residual value guarantee, in which case the amount of theguarantee is the residual value. For finance lease transactions where there is no transfer of ownership beginningprior to the fiscal year when these standards are first applied, the Company uses an accounting method that is basedon the method used for ordinary lease transactions.
3) Accounting for significant allowances(Allowance for doubtful accounts)
To prepare for credit losses on receivables, an allowance equal to the estimated amount of uncollectible receivables isprovided for general receivables based on the historical write-off ratio, and bad receivables based on a case-by-case.
(Allowance for loss on valuation of investments of subsidiaries and affiliates)
To prepare for losses on valuation of investments in subsidiaries and affiliates, the Company provides an allowance in an
appropriate amount determined by taking their financial conditions into account.
(Provision for bonuses)
To provide for employees’ and director-employees’ bonus obligation, the Company and its domestic consolidated subsidiaries
provide an allowance in the amount accrued for the respective period based on the estimated bonus obligations.
There is no system of the bonus provision in an overseas consolidated subsidiary.
(Reserve for guarantee for after-care of products)
As warranty expenses for certain products sold by the Company are subsequently realized, a provision for product warranty
has been recorded in order to reflect the results of their operations more accurately.
(Provision for retirement benefits)
To provide for employees’ retirement benefits, the Company and its domestic consolidated subsidiaries provide an allowance inthe amount deemed to have accrued at the end of the current fiscal year based on projected benefit obligations and pension
assets at the end of the current fiscal year. Transitional obligations arising from the adoption of new accounting standards for
retirement benefits is expensed using the straight-line method, based on 15 years. The actuarial difference is expensed in thefollowing fiscal years using the straight-line method, based on the specified number of years (13 years) within the average
length of remaining work period of employees.
(Provision for directors’ retirement benefits)
To provide for directors’ and officers’ retirement benefits, the Company and its domestic consolidated subsidiaries provide anallowance for the aggregate amount payable at the end of the current fiscal year pursuant to the Company’s rules on directors’
retirement benefits.
4) Other significant accounting policies(Accounting for consumption taxes)
At the Company and its domestic consolidated subsidiaries, consumption taxes are accounted by the tax-exclusion method.
5.

Valuation of assets and liabilities of consolidated subsidiaries
Valuation of all the assets and liabilities of consolidated subsidiaries is based on market price method.

6.

Range of funds in the consolidated statements of cash flows
Cash and cash equivalents in the consolidated statements of cash flows consist of vault cash, deposits that can be withdrawn on
demand, and short-term investments, generally with original maturities of three months or less, that are readily convertible to
known amounts of cash and are so near maturity that they present insignificant risk of change in value.

10Changes in Basis of preparation of Consolidated Financial Statements
Application of “Accounting Standard for Measurement of Inventories”
Previously, Inventories held by the Company and the domestic consolidated subsidiaries for normal sales purpose were valued at cost,
determined by the periodic average method for finished goods and goods in process, by the moving average method for raw materials
and supplies. Effective from the current fiscal year, however, the Company has applied “Accounting Standard for Measurement of
Inventories” (ASBJ Statement No.9, issued July 5, 2006), such inventories are generally valued at cost, determined by the periodic
average method (the carrying value on the Balance sheets is written down to reflect the effect of lower profit margins) for finishedgoods and goods in process, by the moving average method (the carrying value on the Balance sheets is written down to reflect theeffect of lower profit margins) for raw materials and supplies. These corrections do not have a material effect on earnings.
Application of “Practical Solution on Unification of Accounting Policies Applied to Foreign Subsidiaries for Consolidated
Financial Statements”
Effective from the current fiscal year, the Company has applied “Practical Solution on Unification of Accounting Policies Applied toForeign Subsidiaries for Consolidated Financial Statements” (PITF No, 18, issued May 17, 2006).
The application of this standard does not have a material effect on earnings.
Application of “Accounting Standard for Lease Transactions”
Previously, finance lease that do not deem to transfer ownership of the leased property to the lessee were capitalized on the balance
sheets. From the current fiscal year, however, companies are able to apply “Accounting Standard for Lease Transactions” (ASBJ
Statement No. 13, issued March 30, 2007; revised from standard originally issued by the Corporate Accounting Council on June 17,1993), and “Guidance on Accounting Standard for Lease Transactions,” (ASBJ Guidance No.16, issued March 30, 2007; revised fromstandard originally issued by the Japanese Institute of Certified Public Accountants on January 18, 1994). From the current
consolidated first quarter, the Company has applied this standard, treating such leases as regular transaction. In addition, leaseassets that do not deem to transfer ownership of the leased property to the lessee are depreciated using the straight-line method overthe period of the lease, with zero residual value. The application of these standards has a negligible effect on earnings.
For the finance lease transaction in which ownership is not transferred whose lease commencement date is before the first year of
application, accounting according to the method concerning ordinary lease transactions has been continually adopted.
(Reclassifications)
Consolidated balance sheets
With the adoption of “Cabinet Office Ordinance Partially Revising Regulation for Terminology, Forms and Preparation Methods ofFinancial Statements” (Cabinet Office Ordinance No.50, August 7, 2008), “Inventories” is divided into “Merchandise and finishedgoods,” “Work in process,” “Costs on uncompleted construction contracts,” and “Raw materials and supplies” in the current fiscal
year.
The amount of “Merchandise and finished goods,” “Work in process,” “Costs on uncompleted construction contracts,” and “Rawmaterials and supplies” included in “Inventories” in the previous fiscal year was 2,453 million yen, 971 million yen, 204 million yen,
416 million yen, respectively.

11

（Segment Information）
1. Industry Segment Information
FY10/2008 (Nov. 1, 2007 -Oct. 31, 2008)
Housing &Environmental
Equipment
1.Net sales(1)Sales to Outside
Customers(2)Intersegment sales
or Transfers
Total
Operating expenses
Operating income (loss)
2.Assets,depreciation,and capital
expenditures
Asset
Depreciation
Capital expenditures(Millions of yen, rounded down)
Tabletop

ElectroCeramics

11,174

6,436

3,633

24

21,267-

21,267

-

-

-

-

-

-

-

11,174
11,109
64

6,436
6,420
15

3,633
3,979
(346)

24
49
(25)

21,267
21,558
(290)

755
(755)

21,26722,314(1,046)

4,400
166
161

5,323
131
111

2,780
133
270

9
1
11

12,514
432
555

5,532
19
522

18,046451
1,078

Segment
total

Other

Elimination or Consolidated
corporate
Total

FY10/2009 (Nov. 1, 2008 -Oct. 31, 2009)
Housing &Environmental
Equipment
1.Net sales(1)Sales to Outside
Customers(2)Intersegment sales
or Transfers
Total
Operating expenses
Operating income (loss)
2.Assets,depreciation,and capital
expenditures
Asset
Depreciation
Capital expenditures(Millions of yen, rounded down)
Tabletop

ElectroCeramics

9,756

5,007

2,268

30

17,063-

17,063

-

-

-

-

-

-

-

9,756
10,103
(347)

5,007
5,615
(607)

2,268
2,971
(703)

30
88
(57)

17,063
18,778(1,715)606(606)

17,063
19,385(2,322)

4,022
421
319

4,552
146
54

2,159
164
92

8
2
-

10,743
735
466

3,084
43
37

13,828778
503

Segment
total

Other

Elimination or Consolidated
corporate
Total

Notes: 1. Major products in each industry segment:
Industry segments are classified based on the similarities of products, markets and so on.
Industry Segment
Major Products
Housing &Equipment
Tabletop

Environmental

Electro-Ceramics

FRP bath-tubs, Bathroom units, Septic tanks, Water treatment facilities,
Tiles, Wind turbine system
Fine bone china, Fine vitrified china, Fine porcelain, Oven ware
Alumina substrates, Hybrid IC, LTCC substrates,
Dielectric ceramics

2.

Unallocated operating expenses included in eliminations or corporate consists primarily of expenses related to theadministration division at the Company and expenses for research. Amounts are as follows:(Millions of yen, rounded down)
FY10/2008
FY10/2009
755
606

3.

Corporate assets included in eliminations or corporate consist primarily of financial assets (cash and deposits andinvestment securities, etc.), and assets related to the administration division and the research division at the Company.
Amounts are as follows:(Millions of yen, rounded down)
FY10/2008
FY10/2009
5,532
3,084

12

4.

As noted in “Additional Information”, pursuant to the revised taxation system in fiscal 2008, the company and its domestic
consolidated subsidiaries calculate depreciation expense of machinery based on the revised useful life beginning with thefiscal year under review. As a result of this change, as for Housing & Environmental Equipment segment, Tabletop segment
and Electro-Ceramics segment, operating loss increased by 2 million yen, 14 million yen and 17 million yen.

2. Information by Geographic Segment
Geographical segment information is not presented since domestic sales exceeded 90% of total segment sales.

3. Overseas Sales
FY10/2008 (Nov. 1, 2007 - Oct. 31, 2008)(Millions of yen, rounded down)

North America
Overseas sales
Consolidated net sales
Percentage of overseas sales
against consolidated net sales

Asia

1,321

Other

1,096

6.2%

Consolidated total

156

5.2%

FY10/2009 (Nov. 1, 2008 - Oct. 31, 2009)

2,574
21,267

0.7%

12.1%

(Millions of yen, rounded down)

North America

Asia

Other

Consolidated total

Overseas sales
870
699
46
1,616
Consolidated net sales
17,063
Percentage of overseas sales
against consolidated net sales
5.1%
4.1%
0.3%
9.5%
Notes :
1. The countries or areas are classified based on the geographical proximity.
2. Major countries and areas which belong to each classification:
North America : U.S.A., Canada
Asia: Korea, China, Other Asian Countries
3. Overseas sales include the export sales of the company and domestic subsidiaries and the domestic sales of thesubsidiaries abroad.

(Sales by Segment)

Industry Segment

FY10/2008(Nov. 1, 2007 - Oct. 31, 2008)
Percent of
Net Sales
Net Sales(Millions of yen, rounded down)
FY10/2009(Nov. 1, 2008 - Oct. 31, 2009)
Percent of
Net Sales
Net Sales

Housing & Environmental
Equipment

11,174

52.5%

9,756

57.2%

Tabletop

6,436

30.3

5,007

29.3

Electro- Ceramics

3,633

17.1

2,268

13.3

Other

24

0.1

30

0.2

Total

21,267100.0

17,063100.0

Notes:
1. Amounts are converted to sales prices.
2. Amounts do not include consumption taxes.
3. The following table indicates the Company’s Overseas sales share by industry segment and percentage figures represent
Overseas sales ratio.
(Millions of yen, rounded down)
FY10/2008
FY10/2009(Nov. 1, 2007 - Oct. 31, 2008)(Nov. 1, 2008 - Oct. 31, 2009)
Industry Segment
Overseas
Overseas Sales
Overseas
Overseas Sales
Sales
Ratio
Sales
Ratio
Tabletop

2,112

32.8%

1,197

23.9%

Electro- Ceramics

461

12.7

419

18.5

Total

2,574

12.1

1,616

9.5

13

Non-Consolidated Financial Statements(1)Balance Sheets

AssetsCurrent assets
Cash and deposits
Notes receivable-trade
Accounts receivable-trade
Merchandise
Finished goods
Semi-finished goods
Merchandise and finished goods
Work in process
Costs on uncompleted construction contracts
Raw materials
Supplies
Raw materials and supplies
Prepaid expenses
Advances paid
Other
Allowance for doubtful accounts
Total current assets
Noncurrent assets
Property, plant and equipment
Buildings
Accumulated depreciation
Buildings, net
Structures
Accumulated depreciation
Structures, net
Machinery and equipment
Accumulated depreciation
Machinery and equipment, net
VehiclesAccumulated depreciation
Vehicles, net
Tools, furniture and fixtures
Accumulated depreciation
Tools, furniture and fixtures, net
Land
Lease assets
Accumulated depreciation
Lease assets, net
Construction in progress
Total property, plant and equipment14

FY10/2008(As of Oct.31,2008)(Millions of yen)
FY10/2009(As of Oct. 31,2009)

3,756
310
3,072
249
1,121
224
―
971
204
360
55
―
27
171
141
(88)
10,579

1,445
157
2,309
―
―
―
1,354
850
231
―
―
340
34
33
103
(208)
6,651

5,868
(3,437)
2,430
295
(221)
73
6,092
(5,422)
669
220
(208)
12
1,022
(898)
124
924
―
―
―
38
4,272

5,910
(3,584)
2,325
310
(243)
76
5,629
(5,096)
533
220
(211)
8
1,258
(1,152)
106
868
333
(40)
292
1
4,213

Intangible assets
SoftwareLease assets
Telephone subscription right
Total intangible assets
Investments and other assets
Investment securities
Stocks of subsidiaries and affiliates
Investments in capital
Long-term loans receivable from subsidiaries andaffiliates
Lease and guarantee deposits
Claims provable in bankruptcy, claims provable inrehabilitation and other
Long-term prepaid expenses
Derivatives
Other
Allowance for doubtful accounts
Allowance for loss on valuation of investments ofsubsidiaries and affiliates
Total investments and other assets
Total noncurrent assets
Total assets
Liabilities
Current liabilities
Notes payable-trade
Accounts payable-trade
Current portion of long-term loans payable
Lease obligations
Accounts payable-otherAccrued expenses
Income taxes payable
Advances received on uncompleted
construction contracts
Deposits received
Provision for bonuses
Provision for product warranties
Notes payable-facilities
Other
Total current liabilities

15

FY10/2008(As of Oct.31,2008)(Millions of yen)
FY10/2009(As of Oct. 31,2009)

51
―
13
65

51
162
13
227

547
512
2

556
511
2

45

2,126

115

110

7

250

8
23
3
(7)

5
―
3
(254)

(99)

(157)

1,159
5,497
16,076

3,155
7,597
14,248

920
3,062
―
―
619
168
38

484
2,387
100
101
491
142
37

123

103

265
400
94
540
13
6,247

402
280
105
44
47
4,726

Noncurrent liabilities
Provision for retirement benefits
Provision for directors' retirement benefits
Long-term loans payable
Provision for loss on business of
subsidiaries and affiliates
Lease obligations
Long-term guarantee deposited
Deferred tax liabilities
Other
Total noncurrent liabilities
Total liabilities
Net assets
Shareholders' equity
Capital stock
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surpluses
Retained earnings
Other retained earnings
Reserve for advanced depreciation of
noncurrent assets
General reserve
Retained earnings brought forward
Total earned surpluses
Treasury stock
Total shareholders' equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Total valuation and translation adjustments
Total net assets
Total liabilities and net assets

16

FY10/2008(As of Oct.31,2008)(Millions of yen)
FY10/2009(As of Oct. 31,2009)

988
68
―

1,149
76
1,350

483

639

―
86
6
31
1,665
7,913

362
84
6
51
3,719
8,446

3,200

3,200

3,619
0
3,620

3,619
0
3,620

10

9

4,262
(2,493)
1,778
(319)
8,279

1,662
(2,246)
(575)
(333)
5,911

(116)
(116)
8,162
16,076

(109)
(109)
5,802
14,248

(2)Statements of income

Net sales
Net sales of merchandise and finished goods
Net sales of completed construction contracts
Total net sales
Cost of sales
Cost of merchandise and finished goods soldCost of sales of completed construction contracts
Total cost of sales
Gross profit
Selling, general and administrative expenses
Operating income (loss)
Non-operating income
Interest income
Gain on sales of wastes
Priority use fee of products
Other
Total non-operating income
Non-operating expenses
Interest expenses
Foreign exchange loss
Loss on valuation of derivatives
Sales discounts
Commission fee
Other
Total non-operating expenses
Ordinary income (loss)
Extraordinary Income
Gain on sales of noncurrent assets
Total extraordinary Income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on retirement of noncurrent assets
Loss on valuation of investment securities
Loss on valuation of stocks of subsidiaries andaffiliates
Provision for loss on business of subsidiaries andaffiliates
Provision of allowance for loss on valuation of
investments of subsidiaries and affiliates
Loss on disposal of inventories
Total extraordinary losses
Income (loss) before income taxes
Income taxes-current
Income taxes-deferred
Total income taxes
Net income (loss)

17

FY10/2008(Nov.1,2007-Oct. 31,2008)(Millions of yen)
FY10/2009(Nov.1,2008-Oct. 31,2009)

17,346
1,427
18,773

13,843
1,023
14,867

13,6681,139
14,807
3,966
4,889
(922)

11,711
839
12,551
2,316
4,563(2,247)

13
27
50
95
186

3
14
100
114
233

14
111
―
18
―
11
155
(892)

36
9
18
11
18
19
113
(2,127)

―
―

50
50

―
36
287

9
20
―

66

1

256

155

19

58

190
856
(1,748)35858
894(2,642)―244(2,322)32
031(2,354)

(3)Statements of changes in equity(Millions of yen)
FY10/2008
FY10/2009(Nov.1,2007-Oct. 31,2008) (Nov.1,2008-Oct. 31,2009)
Shareholders' equity
Capital stock
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Capital surplus
Legal capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Other capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Total capital surplus
Balance at the end of previous period
Changes of items during the period
Total changes of items during the period
Balance at the end of current period
Retained earnings
Other retained earnings
Reserve for advanced depreciation of noncurrent assets
Balance at the end of previous period
Changes of items during the period
Reversal of reserve for advanced depreciation of
noncurrent assets
Total changes of items during the period
Balance at the end of current period
General reserve
Balance at the end of previous period
Changes of items during the period
Reversal of general reserve
Total changes of items during the period
Balance at the end of current period

18

3,200

3,200

―
3,200

―
3,200

3,619

3,619

―
3,619

―
3,619

0

0

―
0

―
0

3,620

3,620

―
3,620

―
3,620

10

10

(0)
(0)
10

(0)
(0)
9

5,062

4,262

(800)
(800)
4,262

(2,600)(2,600)1,662

(Millions of yen)
FY10/2008
FY10/2009(Nov.1,2007-Oct. 31,2008) (Nov.1,2008-Oct. 31,2009)
Retained earnings brought forward
Balance at the end of previous period
Changes of items during the period
Reversal of reserve for advanced depreciation of
noncurrent assets
Dividends from surplus
Net income (loss)
Reversal of general reserve
Total changes of items during the period
Balance at the end of current period
Total retained earnings
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Total changes of items during the period
Balance at the end of current period
Treasury stock
Balance at the end of previous period
Changes of items during the period
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period
Total shareholders' equity
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stock
Total changes of items during the period
Balance at the end of current period
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total valuation and translation adjustments
Balance at the end of previous period
Changes of items during the period
Net changes of items other than shareholders' equity
Total changes of items during the period
Balance at the end of current period
Total net assets
Balance at the end of previous period
Changes of items during the period
Dividends from surplus
Net income (loss)
Purchase of treasury stockNetchanges of
Total changes of items during the period
Balance at the end of current period

19

(594)

(2,493)0(56)(2,642)800(1,898)(2,493)0―(2,354)2,600
246(2,246)

4,478

1,778

(56)
(2,642)(2,699)1,778―(2,354)(2,354)
(575)

(281)

(319)

(38)
(38)
(319)

(14)
(14)
(333)

11,0168,279(56)(2,642)(38)(2,737)8,279―(2,354)(14)(2,368)
5,911

(116)

(116)

(0)
(0)
(116)

7
7
(109)

(116)

(116)

(0)
(0)
(116)

7
7
(109)

10,9008,162(56)(2,642)(38)―(2,354)(14)(0)(2,737)8,162

7(2,360)5,802